The Municipality of Örebro’s climate fee
Detailed description of the Good Practice
Since it is uncertain whether or not a municipality has the right to buy emission allowances, the Municipality of Örebro has introduced an internal “trading system” relating to the emissions of carbon dioxide from fossil fuels. Climate fees are levied on carbon emissions from travelling and transportation carried out by municipal departments. The fees are levied on air travel and the purchase of fossil fuels, among other things, as well as on business trips undertaken in privately-owned cars. In total, it is expected that these fees will total over one million Swedish kronor during 2010.
The climate fees will be credited to a special climate account, common to the entire municipality. If departments would like to develop their operations or change something in a way that would mean a reduction in the emissions of carbon dioxide or other greenhouse gases, they can then apply for money from this common climate account. The applications received so far show that there are many good ideas which can also be developed further.
All departments are hereby supported in their own efforts involving the climate, while climate fees mean that all departments must now question their travelling and transportation more. For example, is the journey absolutely necessary? If so, is it possible to improve the mode of transport? The better the departments conform to the travel guidelines imposed upon them, the less travel costs and the greater health benefits there will be.
The climate fee is currently 22 öre per kilogram of fossil carbon dioxide. This means, for example, that one litre of petrol “increases in price” by 59 öre and one cubic metre of biogas by 9 öre.
For business trips undertaken in private cars (driven by either petrol or diesel), the climate fee charged to the department will be 5 öre per kilometre. For journeys by air, a surcharge is levied on the cost of the flight: 20 per cent for domestic flights and 10 per cent for international flights.
The system for imposing climate fees has been made as simple as possible, in order to avoid a lot of time-consuming manual work. Computer systems handle the actual fees. However, this has meant certain simplifications in the way that emissions are calculated and dealt with. For example, the climate fee levied on air travel is based on the price, not the distance travelled. The model that has been adopted now will be evaluated after a period of one year. A few other municipalities have introduced similar systems.
Objectives of the Good Practice
to encourage departments of the municipality to develop their operations or change something in a way that would mean a reduction in the emissions of carbon dioxide or other greenhouse gases
Participants of the Good Practice
The Municipality of Örebro
Target group of the Good Practice
departments of the Municipality of Örebro
Funding of the Good Practice
The Municipality of Örebro
More Details of the Good Practice
Data sources and references
Baltic Cities Environmental Bulletin 1/2010